SMO Exclusive: U.S. Stock Market Strength Report 2024-06-21 (no new Longs)

Brian Degracia

23 Jun 2024 • 7 min read

Attached, comprehensive U.S. stock market strength report as of/for the week ending 6/21/24 - negative strength score so no new longs but note Financial sector strength. My analysis mirrors what is being broadly reported. Weak underlying breadth remains the story. The top 7 stocks have about $15 trillion in market cap and they are driving the index levels. Hence a -89% strength score (this is low, the scale is -100% to +100%) while the “market” is at/near all-time highs.

What are you looking at here?

(Those focused on fundamentals will likely ignore. Anyone else open to a different perspective may have interest.) A top-down, inside-out (sector, industry, sub-industry), and bottom-up revealing of strength/strengthening and weakness/weakening throughout the stock market.

It offers unique, logical, and actionable insights from using conventional tools in unconventional ways.

Why do you care?

This report may resonate with you if you subscribe to the following:

The stock market does not have to be so complicated.
“What” matters, not “why.”
Market conditions matter.
The 100%+ rally begins with a 10% rally.
The multi-month rally begins with one up week. (Also applies to declines.)
The stronger your stocks, the greener your P&L.

Current stats

Market Strength Score: -89%, no new Longs
8 of 29 industry rankings strengthened, 1 weakened/Section II
53% of 198 sub-industries strengthened, 13% weakened/Section III
61% of 2,654 stocks positive, 38% negative, 25% stocks rated Strongest, 24% Weakest/Section IV

Leading Sectors/industry groupings with a 4.7 weighted average ranking:

Financial Sector (Banking, Financial Services, Insurance, Real Estate)
Technology Sector (Computer Hardware, Computer Software & Services, Electronics, Internet, Telecommunications)

Lagging Sectors/industry groupings with a 5.3 weighted average ranking:

Consumer Sector (Consumer Durables, Consumer Non-Durables, Food & Beverage, Retail, Specialty Retail)
Industry Group 1 (Automotive, Energy, Materials & Construction, Metals & Mining, Transportation)

Leading Sub-industries (minimum 3 stocks) with a 2Very Strong ranking: